Cabinet may consider new hydro power policy this month
The Ministry of Power’s new hydro power policy, aimed to boost the green energy generation as well as revive some of the stalled hydel power projects, is likely to come up for approval in the Union Cabinet this month.
“The Ministry of Power had finalised the policy and sent to the Ministry of Finance for vetting before placing it for Cabinet approval,” an official in the Ministry of Power told DH.
There are two main features in the new policy — first is granting renewable energy status to all hydro power projects regardless of size, and second is to provide Rs 16,709 crore support to revive stalled 40 hydel projects.
At present, small hydro projects of up to 25 MW capacities are considered as renewable energy and such projects are eligible for various incentives by the government in terms of taxation, duties and also cheaper credit. Projects beyond this capacity are not in this category and hence not entitled to the benefits.
The granting of renewable energy status to all hydro projects regardless of its size, would enable India to achieve clean power capacity of 225 GW by 2022, said the official.